Analysis Topic: Economic Trends Analysis
The analysis published under this topic are as follows.Monday, March 29, 2010
Bernanke Does not Believe in U.S. Phony GDP Economic Growth Data / Economics / Market Manipulation
The revised news from Washington is that the economy grew at a 5.6% rate in the 4th quarter of 2009. The folks who grind the numbers at the Commerce Department credit huge inventory adjustments, robust business investments and recovering consumer spending for the fastest pace of economic growth in six years.
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Sunday, March 28, 2010
Obama's Road to Economic Ruin / Economics / Economic Theory
When Obama ran for the presidency I warned that if elected the American people won't know what hit them. Obama supporters immediately responded with an avalanche of abuse. Last June Obama told a wildly applauding congregation of Hollywood celebrities that "You ain't seen nothing' yet!" I observed at the time that "he was speaking the truth. Americans really have seen nothing yet". Even now millions of Americans still cannot grasp the enormity of his fiscal depredations. Nevertheless, it does appear that the majority of Americans are beginning to catch on to this dedicated leftwinger's -- to put it mildly -- intellectual shortcomings.
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Saturday, March 27, 2010
America and China, the Next Major War / Economics / Global Economy
In the current phase of relative peace and stability we now enjoy, many are questioning when the next major war may occur and speculation is rampant as to major participants involved. Our concern here is strictly of a financial nature, however, and a discussion of the geopolitical and military variables involved in the escalation of war is beyond the scope of this commentary. But what we can divine from financial history is that “hot” wars in a military sense often emerge from trade wars. As we shall see, the elements for what could prove to be a trade war of epic proportions are already in place and the key figures are easily identifiable.Read full article... Read full article...
Saturday, March 27, 2010
What Does the Greek Debt Crisis Mean For Your? / Economics / Global Debt Crisis
What Does Greece Mean to Me, Dad?
Dear Kids,
Ubiquity, Complexity Theory, and Sandpiles
Fingers of Instability
"To trace something unknown back to something known is alleviating, soothing, gratifying and gives moreover a feeling of power. Danger, disquiet, anxiety attend the unknown - the first instinct is to eliminate these distressing states. First principle: any explanation is better than none... The cause-creating drive is thus conditioned and excited by the feeling of fear..." Friedrich Nietzsche
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Friday, March 26, 2010
China Economy, A Tale of Three Swan Songs / Economics / China Economy
The United States, the European Union and others have long been critical of China's renminbi / yuan regime. Many U.S. lawmakers complain China's currency is undervalued by as much as 40% and undercutting the competitiveness of U.S. products.
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Friday, March 26, 2010
Healthcare’s Double-Dip Recession / Economics / Government Spending
One of the most interesting terms to come out of the past two years is the ‘double dip recession’. This is Newspeak for depression as far as I am concerned, but it fits with the new nomenclature we have used in an attempt to paint a crisis as not really being one. After all, what fun is it to admit that we’re in a morass that we have no hope of getting out of, or even a cogent, sensible plan for exiting? It is much easier to conjure up new terms in an attempt to move the boundaries into more palatable territory. This week, in the wake of the biggest nation-killing bill to pass out of the halls of Congress to date, I’m going to tell you exactly why we are now guaranteed a second dip (to use the nomenclature du jour), and how this is going to hit small businesses, which are the backbone of the real economy.
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Thursday, March 25, 2010
U.S. Debt Reaches Tipping Point / Economics / US Debt
Even the most statist economists can understand that a country’s debt has reached its saturation point once the change in Gross Domestic Product is less than the change in the federal debt. However, now the metrics of the American economy look even worse than the picture painted above. For each new dollar in federal debt, with productivity as measured by an increase or decrease in the GDP, 45 cents of wealth is destroyed.
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Thursday, March 25, 2010
The Fable of the Krugman / Economics / Economic Theory
While Paul Krugman likes to present himself as being a Keynesian, in reality, his intellectual roots run back a few centuries to the mercantilists. If you wish to see the Krugman of 300 years ago, read Bernard Mandeville's The Fable of the Bees, first published in 1705, to see all of the same economic (and logical) fallacies that haunt Keynesianism and Krugman's columns.
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Thursday, March 25, 2010
The Paradox of Keynesianism, Paul Krugman and the Consumption Myth / Economics / Elliott Wave Theory
Jonathan Finegold Catalán writes: In "China's Water Pistol," Paul Krugman turned commentary on China into a general attack on those who remain wary of the United States' large public debt. In it, he sums up the Keynesian views on saving, consumption, and government spending. Whatever his intentions, all Krugman does is underscore his own lack of understanding of economic theory.
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Thursday, March 25, 2010
U.S. Policies Will Fail to Avert Hyperinflation / Economics / HyperInflation
The United States send weak economic signals insufficient for a meaningful and sustainable economic expansion required to gain back confidence of national and foreign investors, futureofdollar.com finds in the present research. Political decision-making process is paralyzed by numerous disabilities, while external market constraints obstruct economic recovery. Stagflation is an imminent danger.
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Thursday, March 25, 2010
The US is at a Precipice / Economics / US Debt
Tim Gatto writes: We are at a precipice. This is the end of one era and the beginning of another. The “real” world that so many people believe in, here in America is not the world you see on your TV sets, that is the world that the government and the media want you to believe in. We are so accustomed to believing in our own American ideology that we can’t understand the ramifications of what we have done.
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Thursday, March 25, 2010
Should California Get a Bail Out? / Economics / Credit Crisis Bailouts
As some readers might recall, without budget solutions from the Governor and Legislature, the California State Controller was forced to issue IOUs to several State payees last July in order to prevent a $2.8 billion cash shortage.
IOUs began printing July 2, and ended September 3 of last year.
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Wednesday, March 24, 2010
Growing Gap between Government and Private Sector Benefits / Economics / US Economy
Michael Mandel, former chief economist for BusinessWeek, is now writing on his own blog. Please consider his latest post on The Growing Gap between Govt and Private Sector Benefits.
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Wednesday, March 24, 2010
Sex and Trade Surplus in China / Economics / China Economy
Concerns over the global imbalance resulting from large Chinese current account surplus and large U.S. current account deficits has many economists and politicians locked in heated debates. Some experts, including Paul Krugman, propose measures focusing on changing China’s exchange-rate policy and trade barriers.
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Wednesday, March 24, 2010
China, The Coming Costs of a Super Bubble / Economics / China Economy
China may seem to have defied the recession and the laws of economics. It hasn't. When China's bubble bursts, the global impact will be severe, spiking US interest rates.
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Tuesday, March 23, 2010
U.S. Debt Crisis, Battle for the Budget / Economics / US Debt
Bud Conrad, Editor, The Casey Report writes: Recently the Congressional Budget Office (CBO) published its scoring of President Obama's budget for the next 10 years. It shows a budget deficit of $9.8 trillion. That is just shy of $4 trillion worse than the CBO’s baseline budget, a budget that includes only the laws as currently enacted, with no estimates of any new programs lawmakers may add that worsen future projections.
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Tuesday, March 23, 2010
UK CPI Inflation Falls to 3%, RPI Remains at 3.7% / Economics / Inflation
UK CPI inflation fell back unexpectedly for academic economists to 3% from 3.5% the month before, the Bank of England's forecast for UK inflation by the end of 2010 is 1% not 3% which continues to illustrate the Bank of England is failing in its primary role of accurately targeting an inflation rate of 2%.
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Monday, March 22, 2010
Inflation Bond Issuance Hits Record $200 Billion ahead of Deflation / Economics / Deflation
Concerns about global inflation are once again picking up. Please consider the Financial Times article Inflation-linked issuance to hit record $200bn
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Monday, March 22, 2010
Krugman's Hoover History, Very Misleading Analysis of Deficit Spending / Economics / Government Spending
At his popular New York Times blog, Paul Krugman is at it again, offering a very misleading analysis of deficit spending. Without technically lying, Krugman perpetuates the myth that Herbert Hoover insisted on budget austerity in the midst of the Great Depression. Then Krugman interprets a chart with adjectives that show his eyes can only see what his Keynesian theory will allow.
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Monday, March 22, 2010
The Second Austrian Monetary and Business Cycle Theory Revival / Economics / Economic Theory
Joseph T. Salerno and Jeffrey A. Tucker write: [This article is adapted from introductory remarks delivered by the first coauthor at the Austrian Scholars Conference, March 11–13, 2010, Auburn, Alabama. Both the oral remarks and the written article are joint products of both coauthors.]
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